Living costs are rising: Truss and Sunak propose tax plans that could affect you very differently

It’s no secret thatinflation is skyrocketing. From olive oil to crude oil, if you live in the UK, you’ve probably noticed that your cost of living has dramatically increased this past year. According to ONS data cited in BBC, inflation has reached 9.4% - that’s the highest rate in 40 years.

Politicians are no strangers to public cries for tax cuts. That’s why Truss and Sunak have proposed their plans to handle the soaring living costs sweeping across the country.

How will their proposals affect you?

According to Business Standard, the cost-curbing debate is at the frontline of the battle for conservative leadership. While Truss has pledged to cut taxes altogether, Sunak has proposed a two-step plan that involves supporting vulnerable communities followed by a potential all-around cut in taxes. Here’s what this means:

Under Truss’ proposed plan of attack, the average person would have more money to spend on groceries, petrol, and the occasional night out. In theory, this would be felt immediately.

Under Sunak’s proposal, ‘those who are feeling the pinch the most’ will feel the relief first through targeted support, followed by tax cuts for all.

Rising costs, rising tensions

Neither proposal is without criticism. Truss has called out the first step of Sunak’s proposal for offering ‘handouts’, while Sunak has asserted that not helping the most vulnerable is ‘simply wrong’.

Supporters of Truss, including former PM candidate Penny Mordaunt, have argued that the Foreign Secretary is taking a more rounded approach to cutting taxes, rather than taking money from some to put in the pockets of others. Sunak has responded by claiming that Truss’ plan will only benefit the least well-off by 59 pounds per year.

What's next?

As inflation is expected to continue to rise, both candidates are feeling the pressure to ease cost constraints felt across the UK, albeit more seriously by some than others. In response to speculation that an economic recession is in the air, Former Labour British Prime Minister Gordon Brown has urged for immediate action to be taken by the government despite Boris Johnson’s absence from Downing Street.

While politics are rarely praised for producing perfect solutions, the fate of tax cuts in Great Britain now rests in the hands of the voters, with the winner of the race expected to be announced on 5 September.

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